Citigroup, under increasing pressure, said it will eliminate 11,000 jobs, about 4% of its work force, and take a related $1 billion fourth-quarter charge. Colin Barr reports on Markets Hub. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... he conceded that is the press release from Citigroup today ... the company under new CEO Michael Corbat Michael Corbat with no time putting his stamp on the company ... would announce ... announced layoffs of one thousand people globally will Guzina John Citigroup ... even see the stock to stock up almost five percent now ... so investors are happy ... obvious in you losing their jobs and I can be happy morning Evelyn welcome to the markets of ... Paul beanie with Collin Barr is getting it is the de tails on this on this one just broke a little while ago I ... ran to the strain the stock is up because people who've been investors have been concerned about Citigroup epic there's the sense that they were floundering to the creek and it didn't have any ... any direction and so then um of Mike O'Neill ... chairman who is brought in earlier this year ... installed his CEO Mike Corban ... to believe the company and I think that this announcement is actually from a number of prospective Swan ... I just how much it helps the banks are going through the ringer they're under immense pressure to raise the returns ... the stock's not gone well they need to do something in the first the first move ... along to make is this stuff like this ... until is easiest in this ... while I expect to cut or another threatening us not the easiest way to get to make a profit bigger is is that is to reduce your expenses and so when the things that they've been here three it made a lot of cops ... in different areas a lot of them and videos from Pacelle back office functions new technology and operations in these things ... in the idea is you cut those jobs and as demand for your revenue but they do reduce your expenses so there's that falls right to fall in line with his old African city because they're not just cutting those kinds of jobs that are just cutting the present on the pet store where the focus isn't consuming to make the point of saying in this press release ... where do these things against a Muslim a billion won a year eventually ... um but they're only entered its revenue by three hundred million which is best but they they feel that pressure acutely because revenue has been following pre much across the board of the banks of the biggest banks especially ... on because treating with very strong a few years go is now very weak and there's no sign that's coming back ... in so that puts even more pressure on them to sort of close close ranks in thinking that the costs down and one when the insured things here's the city will be ... after these cuts much to be the smallest of the big four banks before U S banks which are ... I JPMorgan is the Bank of America and Wells Fargo by employment in five years ago from crisis to be was by far the biggest entry and eighty seven thousand shops then with his popular becomes more thing yell don't is that it's been it's been quite turnaround for them so this is that if it is we have the story earlier this week right for Sunday race oh I'll just this issue right thanks ... so can we expect to see other banks making these kinds of move one we had a story a ... earlier this year by Bank of America was accelerating cost-cutting plan funeral feeling the same painting which is that ... on the new rules took away a lot of things and hear the Dodd Frank and in the wake of crisis ... and weak market since the slope on a mean and then there's a lot of competition there a lot of banks that are trying to do the same thing and it does mean that that the things that they did five years to the were profitable ... are not nearly as possible ... interesting Lee one of the things that is proper RightNow's mortgages he's he's not very big in U S mortgages are there feeling the pain ... I think the other key aspect of this is that Mike O'Neill ... people Cooper offered Dick Parsons is the chairman ... in April he's right he's been seen as a chance on The News weekends on Chairman you gotta lot of chairman ... in concrete from Erica who sort of are there in the unit to house one collector mail for them than they appear important thing is they have mice mice highs and things like this ... and I think everybody impression is that this guy is a hands on guy and he's he's been walking this copy is saying ... I wanna make this thing work ... which is something different and to try and so he's he's ... a big question right when hurricane or whatever that is the question I think they're a lot of people are telling and Citigroup all my desk that they're a lot people would tell you ... that this is my Camille doing this does not like Corbett McCormick is addicted to guide to until six zero six eight weeks ago which oversees the overseeing some ... beyond online or business but ... not a huge business for Citigroup overseas his team overseeing international business ... many have this job the job cuts come out in less than two months later ... the show is in short a deep understanding of where the low hanging fruit it is it's extremely hard to believe that my Corbett got that deep understanding in six weeks ... or so so there's there's a lot before going to tell you ... this is like a meal ... saying this is where we're going at this company ... again Citigroup will tell you what my Corbett is the guy who knew most income in the office every day but he likes to be he likes to wear